Ivory Coast is set to create a $500 million green finance fund

The International Monetary Fund (IMF) announced that Ivory Coast will establish a $500 million green finance fund aimed at supporting sustainable growth initiatives.

Africa’s 54 countries have faced the harsh impacts of climate change, even though they contribute significantly less to global pollution compared to the industrialized nations. They obtain merely 1% of the yearly global climate finance.

The new facility in Ivory Coast will be set up under the African Green Banks Initiative, which aims to develop a $1.5 billion ecosystem of green investment facilities across the continent by 2030.

The facility will be funded by public sources including the government of Ivory Coast, the Green Climate Fund, the Global Environment Facility, multilateral development banks, development finance institutions, and possible private sources.

The West African nation, recognized as the leading cocoa producer globally, has been formulating new legislation to bolster various green finance initiatives, including the establishment of an organization to manage carbon credits effectively.

Africa has faced significant challenges due to the impacts of climate change, leading to increased droughts, flooding, and cyclones throughout the continent in recent years.

In March, the IMF’s executive board sanctioned a $1.3 billion, 30-month lending arrangement for Ivory Coast through its Resilience and Sustainability Facility.

The government in Abidjan has pledged to mitigate the negative impacts of climate change, and the lending agreement would bolster its reforms, according to the IMF.